Firmness continued on the bourses in early afternoon trade. The barometer index, the S&P BSE Sensex, was up 157.17 points or 0.76%, up 245.37 points from the day's low and off 31.67 points from the day's high. The market breadth, indicating the overall health of the market, was positive. The market sentiment was boosted by IT major Infosys raising its revenue growth guidance for the year ending 31 March 2014 (FY 2014) at the time of announcement of its Q3 December 2013 results before trading hours today, 10 January 2014. Gains in Asian stocks also underpinned sentiment on the domestic bourses. In the foreign exchange market, the rupee edged higher against the dollar tracking broad losses in dollar versus other major currencies.
FMCG stocks were in demand. Infosys gained in volatile trade after the company raised its revenue growth guidance in both rupee and dollar terms for the year ending 31 March 2014 at the time of announcement of its Q3 December 2013 results before trading hours today, 10 January 2014.
Hindalco Industries dropped after Alcoa Inc, the largest US aluminium producer, reported a massive quarterly loss on Thursday and gave a stagnant outlook on global aluminium demand for 2014. IndusInd Bank gained ahead of its Q3 earnings today, 10 January 2014.
Volatility struck bourses in early trade as key benchmark indices reversed initial gains. The Sensex and the 50-unit CNX Nifty, both, hit their lowest level in more than thee weeks. Key benchmark regained positive zone later. Key benchmark indices extended gains and hit fresh intraday high in mid-morning trade. Firmness continued on the bourses in early afternoon trade.
Foreign institutional investors (FIIs) sold shares worth a net Rs 3.74 crore on Thursday, 9 January 2014, as per provisional data from the stock exchanges.
At 12:15 IST, the S&P BSE Sensex was up 157.17 points or 0.76% to 20,870.54. The index jumped 188.84 points at the day's high of 20,902.21 in mid-morning trade, its highest level since 6 January 2014. The index fell 88.20 points at the day's low of 20,625.17 in early trade, its lowest level since 18 December 2013.
The CNX Nifty was up 43.65 points or 0.71% to 6,212. The index hit a high of 6,222.75 in intraday trade, its highest level since 6 January 2014. The index hit a low of 6,139.60 in intraday trade, its lowest level since 18 December 2013.
The market breadth, indicating the overall health of the market, was positive. On BSE, 1,176 shares gained and 987 shares declined. A total of 148 shares were unchanged.
The total turnover on BSE amounted to Rs 1013 crore by 12:20 IST, compared with Rs 776 crore by 11:20 IST.
Among the 30-share Sensex pack, 16 stocks gained and rest of them declined.
FMCG stocks were in demand. Britannia Industries (up 1.38%), Colgate-Palmolive (India) (up 0.61%), Dabur India (up 0.55%), Godrej Consumer Products (up 0.64%), Hindustan Unilever (up 0.05%), Marico (up 0.37%) and Tata Global Beverages (up 1.53%) gained.
Index heavyweight and cigarette major ITC rose 1.03% to Rs 318.70. The stock hit a high of Rs 319.05 and low of Rs 314.10 so far during the day.
Infosys gained 2.95% to Rs 3,552.90. The stock hit a high of Rs 3,575.20 and low of Rs 3,449 so far during the day. Infosys' consolidated net profit jumped 19.4% to Rs 2875 crore on 0.5% increase in revenues to Rs 13026 crore in Q3 December 2013 over Q2 September 2013. The results are as per International Financial Reporting Standards (IFRS). The strong sequential growth in the company's bottom line was due base effect - Infosys' bottom line in Q2 September 2013 was hit adversely due to a provision of Rs 219 crore during that quarter for one-off visa costs.
Infosys has raised its revenue growth guidance in both rupee and dollar terms for the year ending 31 March 2014. The company expects consolidated revenue in rupee terms to grow 24.4% to 24.9% for the fiscal year ending 31 March 2014 (FY 2014). This guidance is based on rupee dollar conversion rate of 61.81 for the rest of the financial year. The company expects consolidated revenue in dollar terms to grow 11.5% to 12% in FY 2014.
Infosys and its subsidiaries added 54 clients during Q3 December 2013. The company and its subsidiaries reported a gross addition of 6,682 employees for the quarter.
"The year ahead looks exciting for the IT services industry. We believe the global economic environment has improved and our clients are gaining confidence to invest in their strategic initiatives. We continue to differentiate ourselves to seize growth opportunities. The recent changes in organizational structure will enable us to strengthen client relationships and increase market share," said S. D. Shibulal, CEO and Managing Director, Infosys.
"During the quarter, we saw early but promising results of our initiatives to increase efficiency in our operations. We continue to remain focused on making investments necessary to secure and grow our future," said Rajiv Bansal, Chief Financial Officer, Infosys.
Hindalco Industries fell 1.6% after Alcoa Inc, the largest US aluminium producer, reported a massive quarterly loss on Thursday and gave a stagnant outlook on global aluminium demand for 2014. Alcoa said it expected global aluminium demand to grow 7% in 2014, consistent with its 7% growth in 2013.
IndusInd Bank gained 2.14% ahead of its Q3 earnings today, 10 January 2014.
Deccan Gold Mines jumped 9.29% after the company said it has commenced diamond core drilling in its Ganajur-Karajgi PL block. The announcement was made after market hours on Thursday, 9 January 2014.
In the foreign exchange market, the rupee edged higher against the dollar tracking broad losses in the dollar versus other major currencies. The partially convertible rupee was hovering at 61.935, compared with its close of 62.07/08 on Thursday, 9 January 2014.
A $50 billion swap line between Indian and Japan is effective from Friday, 10 January 2014, the Reserve Bank of India said. The agreement, which will be valid till 3 December 2015, aims at addressing any short-term liquidity difficulties. The swap line was initially at $15 billion and following the exchange rate crisis in the summer both the countries entered into a pact to expand the line.
On the macro front, trade deficit widened in December 2013 on slowing export growth, data released by government today, 10 January 2014 showed. The trade deficit stood at $10.14 billion in December 2013, compared with $9.22 billion in November 2013. Merchandise exports rose 3.49% year-on-year to $26.35 billion, slowing down from a 5.86% pace in November. Imports fell 15.25% year-on-year to $36.49 billion as gold and silver imports dropped.
Industrial production is seen registering a muted growth of 0.9% in November 2013, as per the median estimate of a poll of economists carried out by Capital Market. Industrial production had declined 1.8% in October 2013, against 2% growth in September 2013. The decline in the output of manufacturing sector at 2% and mining sector at 3.5% mainly led to decline in industrial production in October 2013. The government will unveil industrial production data for November 2013 after trading hours today, 10 January 2014.
The Reserve Bank of India's Third Quarter Review of Monetary Policy for 2013-14 is scheduled on 28 January 2014.
Asian stocks rose on Friday, 10 January 2014, as data showed China's trade surplus narrowed and investors awaited a report on U.S. payrolls. Key benchmark indices in Indonesia, Japan, Hong Kong, Singapore and Taiwan rose by 0.01% to 0.68%. Key benchmark indices in China and South Korea fell by 0.39% to 0.76%.
China's exports rose 4.3% in December from a year earlier, according to reported data, after surging 12.7% in November. Imports were 8.3% higher than the year-ago month, accelerating from 5.3% growth in November. The resulting trade surplus was $25.6 billion, narrowing from the previous month's $33.8 billion.
Trading in US index futures indicated that the Dow could advance 26 points at the opening bell on Friday, 10 January 2014. The S&P 500 index eked out a marginal gain on Thursday, 9 January 2014, while the Dow Jones Industrial Average and the Nasdaq Composite index dropped, weighed down by losses for Verizon Communications Inc. and AT&T Inc.
The number of Americans who applied to receive unemployment benefits in the first week of the new year fell to the lowest level since the end of November. In the week ended Jan. 4, initial jobless claims fell by 15,000 to a seasonally adjusted 330,000, the US Department of Labor said Thursday.
The US government will unveil the influential non-farm payroll report for December 2013 today, 10 January 2014.
The Federal Open Market Committee (FOMC) holds a two-day monetary policy meeting on 28 and 29 January 2014. By a 9-to-1 vote, the Fed on 18 December 2013 decided to trim its asset-purchase program by $10 billion to $75 billion per month starting in January 2014. The US central bank is poised to continue winding down its stimulus measures gradually this year.
Janet Yellen, incoming Federal Reserve chairwoman, said in an interview with Time magazine on Thursday, 9 January 2014, that the US economy would see stronger growth this year.
The Bank of England on Thursday, 9 January 2014, left the size of its bond-buying program unchanged and held its key lending rate at a record low of 0.5%, where it has stood since March 2009. The central bank's Monetary Policy Committee left its asset purchases, the centerpiece of its quantitative-easing strategy, at 375 billion pounds ($617 billion). The minutes from the January meeting will be published on 22 January 2014.
The European Central Bank on Thursday, 9 January 2014, kept its main interest rate unchanged at 0.25% after a monetary policy review.
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